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Your grown kids have moved back in: Are they covered by home insurance?

 According to the Pew Research Center, there has been a significant increase in the number of 18-29-year-old Americans living with their parents. Young adults have chosen to move in with family members, which can be explained by the disappearing jobs, unaffordable rental housing, and the difficulty of living in large cities. It’s not a singular situation, just to be clear. Roughly 1.5 million Canadians have moved back home seeking shelter from the COVID-19 fallout, Ontario, Quebec, and B.C seeing the most moves. Having grown kids still at home doesn’t do any harm. Actually, you can have a peaceful household, while avoiding friction and chaos. 

Image source: https://unsplash.com/photos/3cAMUE3YAO8 

If your children are coming home soon, then you can’t wait to welcome them with open arms. When someone returns to the family nest unforeseen financial circumstances might appear. More exactly, insurance costs might go up and you’ll end up paying more overall. It’s recommended to take the time to study your home insurance policy. 

The size of your family impacts the home insurance cost 

A standard home insurance policy covers the property and people living in the home. Relatives, no matter if the kin relationships are based on birth or marriage, are covered by the home insurance policy if they are permanent residents of the household. Other than covering for all the property, the parents’ policy cover’s everyone’s personal legal liability. Welcoming an adult child back home can impact your home insurance policy premium. It’s best to call the insurance company and let them know there has been a change in your situation. 

There may be limits on your existing policy, so be careful. A new arrival translates into more jewelry, furniture, electronics, and so on, which can get stolen or be destroyed by natural disasters. It will be necessary to add more coverage. Valuable possessions must be insured for a higher specific value or listed separately under your policy. If you’re going to renovate one or more rooms in your home, reach out to the insurance company and adjust the coverage so that it matches the new living situation. Remodeling projects increase home value, so you should increase your coverage. 

Home insurance needs attention when grown kids move in 

As you’ve been able to see, it’s necessary to make an important adjustment. Your grown offspring have failed to meet your expectations, but they’re not to blame, really. The coronavirus outbreak has managed to destroy the lives of young people, leaving them distressed and worried about finances. So, you shouldn’t think about your adult-aged children as free-range kids. They’re not happy with the situation. Understand that it can be difficult to be pulled away from a familiar setting, where you feel comfortable, and have your plans ruined. Your grown kids can resume their old activities or even meet up with their friends. 

If your loved ones are moving back home and bringing valuable items with them, contact your home insurer, and have a long talk. Together, you’ll go through the listed values on the policy and ensure you’ve got the right amount of coverage. The home must be insured at an appropriate value. The home insurance company will change the terms and conditions, policy features, and, last but not least, the range of exclusions. Keep in mind that special exceptions also apply to your grown offspring’s valuables. Home insurance doesn’t typically include flood damage, so you have to purchase it separately. 

Decide when it’s the right time to cut the financial cord 

So, your adult-aged children are unexpectedly moving back home. The most important thing is not to freak out. The situation is temporary; it’s not going to be like this forever. If the grown kids spend a few extra years at home, so much the better. You’ve got the opportunity to reconnect and resume the closeness you had. However, make them understand they’re moving into a house of your rules. Teach your adult children to be self-reliant. If they have an income, they should pay the rent and help out with the bills. If not, you need to be more compassionate. Many have been laid off during the global pandemic and securing employment is harder and harder. 

You’re not supposed to finance your family’s lifestyle, especially now that the kids are all grown-up. Give them between six months and a year to get used to the situation. After that, they should start looking for a job. There’s no saying how long your loved ones will stay with you. Don’t worry because they’ll move out when they can. You can help your grown kids out financially but if you want them to be independent, don’t let them depend entirely on you. Instead of seeking a traditional job, your children should look into freelancing opportunities. It helps earn a couple of bucks. 

You can relax some of the restrictions imposed before the kids moved out. For instance, they can spend as much time as they like on social media. You’re financially better as compared to when your children were away at university, so you can afford it. For the time being, you can pay for all the bills, plus accommodation and pocket money. But make sure that your loved ones are saving money for a mortgage deposit. Securing a mortgage without a big deposit is nearly impossible. If you’re going to lend a helping hand yet again, make sure to protect your own interests. Instead of simply giving your adult children the money, loan it, and charge an interest rate. 

So, you thought it was safe to enjoy your empty nest. Now, your grown kids are moving back in. not informing your insurance company about small changes can complicate future claims if an issue occurs. It’s best to come clean. Set an appointment with the insurer – a virtual one, that is – and resolve the situation. Know precisely who you’re speaking with and have all the important information at hand. As far as your adult children are concerned, limit your financial assistance to expenses that will enable them to gain financial independence. If they want to go back to school, then so be it.

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